PF money will be withdrawn from ATM

Recently there were reports that EPFO ​​will soon issue an ATM card , which will allow people to withdraw money from their EPF account anytime. If this change is implemented, the process of withdrawing money from PF will become even easier and faster, giving you 24×7 access to your deposited capital.

The contribution limit in EPFO ​​will increase

Currently, contribution to EPF is made only on basic salary up to ₹15,000 but the government is now planning to allow contribution to EPF on the basis of the entire salary. This means that if an employee’s basic salary is ₹1 lakh, then he will now be able to deposit ₹24,000 (employee and employer combined) in EPF every month. This will help in saving more money for the future.

Equity investment limit will also increase

EPFO invests the money deposited in your EPF account in various investment schemes so that it earns interest and the money grows. One way is to invest in Exchange Traded Funds (ETFs). EPFO ​​is working on the idea of ​​reinvesting the profit from ETFs in shares and other investment options so that more interest can be earned on EPF.

Facility for pension can be availed from any bank branch

In September 2024, the Central Government approved the Centralized Pension Payment System (CPPS). After this, about 78 lakh EPF pensioners will get the facility that they will be able to withdraw their pension from any bank branch and not from any particular bank branch. This will give more flexibility to the pensioners and they will be able to get their pension from any part of the country.

Last date for application for higher pension

EPFO has also announced that all companies should upload the salary details of their employees on the EPFO ​​portal by 31 January 2025. Apart from this, if EPFO ​​has asked for any other information, then it has to be made available by 15 January 2025. This step is for those employees who have applied for higher pension so that their application can be processed as soon as possible.

These changes are aimed at making the EPF system more convenient, transparent and beneficial. These steps will help you grow your EPF account and prove to be helpful in strengthening your financial position in the future.

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Its purpose is to provide more benefits to the employees on retirement. Employees who take care of more pension or fund after retirement will be given an opportunity to contribute more to PF. This will eliminate the limit of 12 percent contribution.

A senior official of the Labour Ministry said that the aim of this reform is to provide more pension and funds to the employees after retirement. Therefore, there is a consideration to abolish the limit of 12 percent contribution in the investment option. Currently, both the employer and the employee have to contribute 12-12 percent of the basic salary. The Employees Provident Fund Organization (EPFO) is now considering abolishing the limit of 12 percent in this system.

For whom will the change be made?

According to the official, the 12% limit of contribution in PF will be abolished only for employees. This will not affect employers. This system will benefit about 6.7 crore employees of the country. The government’s objective is that employees can invest as much of their income as possible in investment options, so that after retirement they get more money for living.

How much contribution does the employer make?

As per EPFO ​​rules, out of the 12% contribution made by the employer, 8.33% goes to the employee’s pension scheme account, while 3.67% is deposited in his PF account every month. Its maximum limit is Rs 15,000. Employees who have joined after September 1, 2014 can contribute only 8.33% or a maximum of Rs 15,000 to their pension fund.

Rules for employees too

EPFO ​​has also made rules for employees’ contribution. Employees who have joined service before 1 September 2014 and have chosen the joint option can contribute 8.33% to their pension fund. The government is thinking of abolishing this limit so that employees can contribute as much as they want to the pension fund. Employees will get another option that they can put as much money as they want in lump sum or pension as per their wish.

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This demand has increased even more when last year the government added the standard deduction with the new tax regime. It has been almost five years since the standard deduction was revised. The standard deduction was last changed in the year 2019.

Although the budget of year 2024 will be only an interim budget, still the middle class salary class is sitting with high expectations. It is expected that Finance Minister Nirmala Sitharaman may give some relaxation on some taxes. Will the standard deduction be increased by Rs 50,000 in Budget 2024?

What is standard deduction?

Standard deduction is a flat deduction the salaried class can avail of from taxable income without showing any expenditure or saving. Its objective is to achieve parity between taxpayers who receive income through salaries and income from business. At present, standard deduction is available in both the old tax regime and the new tax regime.

Standard deduction was introduced for the first time in the year 1974

Standard deduction was first introduced in India in 1974. As per the history of Standard Deduction, this deduction was available to salaried individuals and pensioners to cover some of their expenses. It was removed in 2004–2005 to simplify taxation. It was re-introduced in the Union Budget in 2018 and fixed at Rs 40,000 for salary class employees and pensioners.

In the interim budget presented on 1 February 2019, the standard deduction limit was increased to Rs 50,000. However, this was limited to the old tax system. In Budget 2023, it was combined with the new tax regime. Standard deduction of Rs 50,000 was allowed in the new tax regime.

Why should the standard deduction be increased by Rs 50,000 in Budget 2024?

There are several reasons for increasing the standard deduction limit from Rs 50,000. Many tax experts believe that it needs to be increased from Rs 50,000 to Rs 1,00,000. People need to increase the standard deduction to cope with inflation and increase disposable income.

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As per EPFO ​​rules, 12 per cent of the basic income of the employee is deposited in the EPFO ​​account, out of which 8.33 per cent is set aside for pension account and 3.67 per cent for Employees’ Provident Fund (EPF). If an employee leaves his job or takes leave in between. So in that case do they lose their pension entitlement? You are being given information about this here.

As per EPFO ​​rules, the length of service of an employee is taken into account even if they take leave in between. In other words, if a person returns to his job after a gap of some years, his previous years of service will be added to his current tenure.

Explain that to take advantage of the pension scheme of EPF, it is necessary for the employee to work for at least 10 years. If an employee changes companies, his Unique Account Number (UAN) remains the same and his total working period is calculated net of any gaps in between.

Understand the terms of pension like this

If a person works for a company for 7 years and takes a break of one year, then works for another 4 years, then their total job span will be considered as 11 years. In this scenario, the employee will be entitled to EPF pension benefits. Also, if a person works for 9.5 years, he is eligible for a grace period of 6 months as per EPFO ​​rules, which is equal to 10 years.

This is how you can take advantage of the pension scheme

EPFO scheme is an important financial instrument for salaried individuals, as it ensures pension benefits after retirement. It is important to note that the requirement of length of service for pension eligibility is an important aspect that every EPFO ​​subscriber should be aware of. So, even if you are an EPFO ​​subscriber and you have left your job, you can still avail the benefits of the pension scheme by ensuring a total job tenure of 10 years or more.

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EPFO Interest Credit Date: EPFO ​​has given a big gift to the employees. If you are also employed, then soon PF interest money is going to come in your account. The interest money for the financial year 2022 has started coming into your account, but even after this the interest amount is not visible in the statement of many people. On this matter, the government has said that the software is being updated, due to which it is not showing in the statements of many people, but for this you do not have to worry.

Interest is being received at the rate of 8.1 per cent, the
Central Government is getting the benefit of interest at the rate of 8.1 per cent on PF. This rate of interest is the lowest in the last 40 years. At the same time, earlier in the year 1977-78, interest was given at the rate of 8 percent.

Let us tell you how you can check your interest amount –

Check balance by missed call You can also check the interest amount by giving a missed call from your registered mobile number. You have to give missed call on 011-22901406 from your registered mobile number. After this, all the details of interest will come on your number.

Check from the official website

Apart from this, you can also check through the official website epfindia.gov.in. After visiting this link, you have to go to the e-passbook. Now here you have to fill your username (UAN number), password and captcha. Now you will get all the details.

Check details from Umang app

Apart from this, you can also check the interest amount of PF through Umang app. You can download this app from play store. Have to go to Employee-Centric Service. Click on ‘View Passbook’. With this you fill your UAN number and password (OTP) number. OTP will come on your registered mobile number. After this you can check your PF balance.

Check details by message You can also check your balance by sending message to this number 7738299899. You have to send the message by writing EPFOHO. After this you will get the message.

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EPF Interest: This year on Diwali, employed people can get great news. Actually, the government can soon transfer the interest amount to the account of PF account holders. For this, EPFO ​​can soon announce to transfer interest for 2021-22 to the accounts of more than 6.5 crore customers. Explain that in 2021-22, EPFO ​​will deposit interest at the rate of 8.1 percent in the account of its members. This amount will be directly deposited in your PF account. 

This is how the calculation of interest happens: 
Explain that there is a contribution of both the employee and the employer in the PF account. In this, 24% of the basic and Dearness Allowance (DA) together are deposited. But interest is not earned on the entire payment. Your PF gets deposited every month, while interest is accrued on an annual basis. According to the EPFO ​​rules, if there is any withdrawal on the last date of the financial year, then 12 months interest is deducted after deducting it. EPFO always takes the opening and closing balance of the account and the monthly running balance is added accordingly. 

If 10 lakhs are deposited in the account, then you will get this amount: 
For the year 2021-22, money will be given on EPF at 8.1 interest rate. Accordingly, interest at the rate of 8.1 percent will be transferred on the amount deposited in the account of any PF account holders. Suppose you have one lakh rupees deposited in your PF account, then at the rate of 8.1 percent, you will get 8,100 rupees as interest annually. On the other hand, if the amount deposited in your PF account is 10 lakh rupees, then 81 thousand rupees will be transferred to your account as interest.

Check the amount deposited in your account like this: 
– To check the amount deposited in your PF account, first of all go to the website of EPFO. 
– Here in Our Services dropdown, select ‘For Employees For Employees’. 
Then click on Member Passbook. Log in here by submitting your UAN number and password. 
Now select your PF account. As soon as you open it, you will see the balance in front of you.  
Apart from this, you can easily get the balance information in the account by sending a message. 
For this, you have to type EPFOHO UAN ENG from your registered mobile number and send it to 7738299899. The last three characters of the message are for the language. If you want information in Hindi then you can send HIN.

You can also know the balance by missed call: 
For this, you have to give a missed call to the phone number of EPFO ​​​​from your registered mobile number. This service can be availed only when KYC is updated from your UAN. If KYC is updated, you can check the balance by missed call in the two steps mentioned below.
Give a missed call to 011-22901406 from your registered mobile number.
After making a missed call, you will get an SMS with your PF details, which will have complete balance details. 

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